In July 2019, the US Securities and Exchange Commission (“SEC”) issued interpretive guidance on the standards of conduct for investment advisers.[1] The guidance outlines an investment adviser’s duty of care and loyalty as a fiduciary to its clients and specifically … Read More
When a regulator shows its hand, take it seriously—a poignant lesson that one is wise to heed. At the end of January, the Securities and Exchange Commission (“SEC”) released a Risk Alert entitled ‘Observations from Broker-Dealer Examinations Related to Regulation … Read More
Regulators have showed renewed interest in investment fees in recent years. Specifically, the U.S. Securities and Exchange Commission (SEC) has heightened focus on advisers not complying with the Investment Advisers Act of 1940, when fully disclosing all material conflicts of … Read More
If your firm offers a wrap fee program to clients or recommends that clients participate in a wrap program, now is an opportune time to review your fee disclosures and billing practices and best execution protocols. In July 2021, the U.S. … Read More
Failure to disclose conflicts of interest. Making misleading statements. Creating positive incentives and negative pressures for its sales force. Failure to adopt and implement written policies and procedures.
The 1,700 market participants who heard new U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s remarks at the remote annual meeting of the Financial Industry Regulatory Authority (FINRA) on May 20, 2021, came away with a clear vision for … Read More
When it comes to the preparation and submission of required annual documents to the U.S. Securities and Exchange Commission (SEC), few regulatory filings demand the level of meticulous care that investment advisory firms must use in completing Form ADV. It … Read More
Not long ago, the ability to invest in private offerings in the U.S. was limited to those whose annualized income and net worth afforded a country-club lifestyle. The requirements were an average income of $200,000 for the last two years … Read More
On July 31, 2020, the Securities and Exchange Commission (“SEC”) announced it was charging Connecticut-based investment adviser, Birinyi Associates, Inc. (“BA” or the “Firm”), with violations of Sections 206(2) and 206(4) and Rule 206(4)-7 thereunder (“the Compliance Rule”) of the … Read More
On July 28, 2020, the Securities and Exchange Commission (“SEC”) announced it was charging Houston-based financial services firm, Valic Financial Advisors, Inc. (“VFA” or the “Firm”), a dually registered broker-dealer and investment adviser, in two separate actions for violations of … Read More